VOL. 133 | NO. 111 | Monday, June 4, 2018
Memphis Real Estate Recap
One Beale, St. Jude, Sedgwick Projects Move Forward
By Patrick Lantrip
263 Wagner Place, Memphis, TN 38103: Carlisle Corp.’s expanded plans for One Beale received unanimous approval from the Center City Revenue Finance Corp. on Tuesday, May 29.
Project Cost: $111 million
Application Date: May 29
Owner: Carlisle Corp.
Architect: HBG Design
Details: The project was initially awarded a 20-year PILOT (payment-in-lieu-of-taxes) incentive by CCRFC in 2015, so Carlisle was seeking a green light to update the project's scope, get a closing deadline extension, and receive reaffirmation of a previous commitment to fund an onsite public parking garage.
Carlisle Corp. chief operating officer Chance Carlisle said his company elected to delay the project after it was able to acquire the Ellis family’s adjacent property, effectively allowing the company to double One Beale’s footprint.
Carlisle now plans on developing the project in two phases, the first of which would carry a $111 million price tag and include a 200-plus-room hotel with 20,000 square feet of ground-floor retail; a 227-unit apartment building with 10,000 square feet of office and 7,000 square feet of retail; and a parking garage with as many as 490 spaces.
Phase Two of the project would include 200,000 to 400,000 square feet of Class A office space on the southwest corner of Wagner and Beale. It will be brought before the CCRFC as a separate PILOT application at a later date.
The timing of Phase Two, Carlisle said, will correspond with the needs of a yet-to-be-determined anchor tenant.
If everything goes as planned after One Beale’s June 5 date with the Memphis City Council regarding the closure of Wagner Place, Carlisle said the first building permits could be pulled as early as November.
612 St. Jude Place
Memphis, TN 38105
Permit Amount: $21 million
Project Cost: $412 million
Owner: St. Jude Children’s Research Hospital
Architect: The Crump Firm
Engineer: Jacobs Engineering
Contractor: Flintco Inc.
Details: St. Jude Children’s Research Hospital has filed a $21 million building permit application to lay the foundation of its $412 million advanced research center.
Flintco Inc. was listed as the project’s contractor.
St. Jude announced plans for the 625,000-square-foot building in February as part of the ongoing $1 billion capital expansion of its Downtown campus.
The eight-story facility will feature six floors of labs focused on immunology, neurobiology, cell and molecular biology, gene editing, metabolomics, advanced microscopy, epigenetics, genomics, immunotherapy and RNA biology.
The Crump Firm is the lead architect on the project, with Jacobs Engineering designing the lab.
8155 T&B Blvd.
Memphis, TN 38125
Permit Amount: $20 million
Owner: Boyle Investment Co.
Tenant: Sedgwick Claims Management Services Inc.
Details: Sedgwick Claims Management Services Inc. has filed a $20 million building permit application with construction code officials to renovate its new headquarters.
Located at 8155 T&B Blvd., Sedgwick’s new home was once the headquarters of electrical components manufacturing company Thomas & Betts Corp.
Sedgwick was awarded a $10.4 million tax abatement from the Economic Development Growth Engine for Memphis and Shelby County in February 2017 for the move.
Currently, the company operates out of two locations – 90,000 square feet at 1100 Ridgeway Loop Blvd. and 80,000 square feet at 2620 Thousand Oaks Blvd. The relocation will allow Sedgwick to consolidate into one 245,808-square-foot facility.
477 S. Main St.
Memphis, TN 38103
Permit Amount: $7.1 million
Owner: Arrive Hotels & Restaurants
Architect: Chris Pardo, Elemental Architecture
Contractor: Montgomery Martin Contractors
Details: Arrive Hotels & Restaurants has filed a $7.1 million building permit application for its new South Main location.
The renovations to transform the former Memphis College of Art graduate school, 477 S. Main St., into Arrive’s 62-room hotel will be handled by Montgomery Martin Contractors.
Arrive co-founder and lead developer Chris Pardo is listed as the project’s architect.
The Center City Revenue Finance Corp. awarded the boutique hotel a 15-year PILOT in February 2017. This April, the CCRFC approved a change of ownership for the project from previous developer John Wessman to Pardo.
3920 S. Perkins Road
Memphis, TN 38118
Sale Amount: $1.6 million
Buyer: Gregory Realty
Buyer Rep: Brian Califf, NAI Saig Co.
Seller: Boyle Investment Co. and Apex Property Group
Seller Rep: Jonathan Aur and Joel Fulmer, Boyle Investment Co.
Details: Gregory Realty has acquired more than 53,000 square feet of industrial/flex space at 3920 S. Perkins Road and 3900 Perkins Cut Off Road for just over $1.6 million.
NAI Saig Co. executive vice president Brian Califf represented Gregory Realty in the deal while Jonathan Aur and Joel Fulmer represented the sellers, Apex Property Group and Boyle Investment Co.
NAI Saig will handle leasing of the property moving forward.
Califf said Gregory Realty has significant capital improvement plans to renovate the spaces and lease the remaining vacancies. At the time of the purchase, the buildings were 60 percent occupied.
“The location of the property is excellent,” Califf said. “It’s just minutes away from Highway 78 and the BNSF intermodal yard, and is right in middle of a fast-growing industrial sector of the market. We have flexible space options that can accommodate anywhere from a 1,900-square-foot user to a 12,000-square-foot user with a mix of office and warehouse space at a very attractive rental rate.”
Gregory Realty has been actively growing its commercial portfolio in the last 12 months by acquiring 70,000 square feet of industrial/flex space in Bartlett for $6 million, and 80,000 square feet of office space at 855 Ridge Lake Blvd. for $7 million.